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SECTION ONE- ANSWER BOTH QUESTIONS QUESTION ONE XYZ Ltd has six independent projects whose financial data is as follows: XYZ Ltd has six independent projects

SECTION ONE- ANSWER BOTH QUESTIONS QUESTION ONE XYZ Ltd has six independent projects whose financial data is as follows: XYZ Ltd has six independent projects whose financial data is as follows: Year A B C D SCR. SCR. 250,000 250,000 0 50,000 25,000 50,000 SCR. SCR. 500,000 500,000 175,000 0 0 0 0 50,000 175,000 50,000 50,000 0 500,000 Investment Per year 0(2023) 1 1231 4 5 6-9 10 11-15 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 175,000 175,000 175,000 E SCR. 500,000 12,500 37,500 75,000 125,000 125,000 125,000 125,000 F SCR. 125,000 57,500 50,000 25,000 25,000 Per year All the projects are divisible. The firm's policy is to utilize only retained profits to finance its projects. The firm's cost of capital is 15%. REQUIRED: a) Calculate the present value of the cash flows of each investment / project. b) Calculate the NPV of each investment / project and select which ones should be accepted. (18 marks) (7 marks) (Total: 25 marks) SEC
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SECTION ONE - ANS WER HOTH QUESTIONS QUESTION ONE XYZLtd has six independent projects whose financial data is as follows: All the projects are divisible. The firm's policy is to utilize only retained profits to finance its projects. The firm's cost of capital is 15%. REQUIRED: a) Calculate the present value of the cash flows of each investment/project. (18 marks) b) Calculate the NPV of each investment / project and select which ones should be accepted. ( 7 marks) (Total: 25 marks) SECTION ONE - ANSWER BOTH QUESTIONS QUESTION ONE XYZ Ltd has six independent projects whose financial data is as follows: All the projects are divisible. The firm's policy is to utilize only retained profits to finance its projects. The firm's cost of capital is 15%. REQUIRED: a) Calculate the present value of the cash flows of each investment/project. (18 marks) b) Calculate the NPV of each investment / project and select which ones should be accepted. (7 marks) (Total: 25 marks)

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